Exhibit 99.1 |
NEWS RELEASE
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846 N. Mart-Way Court, Olathe, Kansas 66061 Phone: 913-647-0158 Fax: 913-647-0132
investorrelations@elecsyscorp.com
FOR IMMEDIATE RELEASE:
Contact: Karl B. Gemperli
(913) 647-0158, Phone
(913) 647-0132, Fax
investorrelations@elecsyscorp.com
ELECSYS CORPORATION REPORTS SECOND QUARTER FINANCIAL RESULTS
Olathe, Kansas (December 11, 2006) - Elecsys Corporation (AMEX: ASY), today
announced its financial results for the second quarter ended October 31, 2006.
Sales for the quarter were $5,596,000, an increase of $2,050,000, or 58%, from
the comparable period of fiscal 2006. For the six months ended October 31, 2006,
sales were $9,458,000, an increase of $2,432,000, or 35%, from the six months
ended October 31, 2005. Total backlog at October 31, 2006 was $10,709,000, an
increase of $253,000, or 2%, from a total backlog of $10,456,000 on October 31,
2005 and a decrease of $1,602,000 from a total backlog of $12,311,000 on July
31, 2006.
Gross margin was approximately 30% of sales, or $1,660,000, for the quarter as
compared to 33% of sales, or $1,167,000, for the quarter ended October 31, 2005.
For the six-month period ended October 31, 2006, gross margin was 31%, or
$2,974,000, compared to 31%, or $2,190,000, for the six-month period ended
October 31, 2005.
Operating income for the quarter was $490,000, an increase of 65% as compared to
$297,000 for the same quarter in the prior year. For the six-month period ended
October 31, 2006, operating income was $823,000, or 90% higher, as compared to
$434,000 for the same period in the prior fiscal year.
As a result of the above, net income was $241,000, or $0.07 per diluted share,
for the quarter ended October 31, 2006 after deducting $162,000 for income tax
expense. For the quarter ended October 31, 2005 net income was $257,000, or
$0.08 per diluted share, and did not include any income tax expense for the
period. For the six-month period ended October 31, 2006, net income was
$410,000, or $0.12 per fully diluted share, including $299,000 of income tax
expense, as compared to $371,000, or $0.11 per fully diluted share, with no
income tax expense, for the six-month period ended October 31, 2005.
The increase in sales for the quarter was due to both new and existing customer
orders at DCI, including a significant increase in sales to one of our newer
customers to help them meet the requirements of a certain contract. Sales at NTG
decreased 36% from the second quarter of the previous fiscal year as a result of
fewer unit shipments during the period slightly offset by an increase in
recurring messaging services revenue, which grew by 26% over the comparable
period. Our improvement in gross margin dollars resulted from the increase in
sales volumes while overall product mix led to a slight decrease in gross margin
percentage. Considering the timing of shipments from orders in backlog, we
expect DCI sales volumes over the next few quarters to be higher than in
previous comparable periods. Sales at NTG are expected to be higher over the
next few quarters as compared to the current quarter. Thereafter, NTG sales are
expected to show steady growth as new products are brought to the market and our
increased marketing efforts are anticipated to show increases in backlog and
product sales. However, total sales for the remaining two quarters of the fiscal
year may be slightly lower than the sales volumes achieved in this last
three-month period.
Karl B. Gemperli, Chief Executive Officer, stated, "We are pleased to
report the results of the second quarter and are proud of the growth we have
shown relative to last year. Our strong revenue growth and increased gross
margin dollars is a testament to the efforts of our people to continuously
enhance our operations. Even with additional one-time relocation expenses from
the move to our new state-of-the-art manufacturing facility and the full effect
of income taxes, our resulting year-to-date net income compares favorably with
the previous year. We will continue to make prudent long-term investments in all
areas of our business in order to realize the additional business prospects in
front of us."
Elecsys Corporation is a publicly traded holding company with two wholly owned
subsidiaries, DCI, Inc. and NTG, Inc. DCI designs, manufactures, and integrates
custom electronic interface solutions for original equipment manufacturers in
the medical, aerospace, communications, industrial product, and other
industries. DCI has specialized capabilities to design and efficiently
manufacture custom electronic assemblies which integrate a variety of interface
technologies, such as custom liquid crystal displays, light emitting diode
displays, and keypads, with circuit boards and other electronic components. NTG
designs, markets, and provides remote monitoring solutions for the gas and oil
pipeline industry as well as other industries requiring remote monitoring
solutions. For more information, visit our website at www.elecsyscorp.com.
Safe-Harbor statement: The discussions set forth in this press release may
contain forward-looking comments based on current expectations that involve a
number of risks and uncertainties. Actual results could differ materially from
those projected or suggested in the forward-looking comments. The difference
could be caused by a number of factors, including, but not limited to the
factors and conditions that are described in Elecsys Corporation's SEC filings,
including the Form 10-KSB for the year ended April 30, 2006. The reader is
cautioned that Elecsys Corporation does not have a policy of updating or
revising forward-looking statements and thus he or she should not assume that
silence by management of Elecsys Corporation over time means that actual events
are bearing out as estimated in such forward-looking statements.
Elecsys Corporation and Subsidiaries
Consolidated Statements of Operations
(In thousands, except per share data)
(Unaudited)
Three Months Ended Six Months Ended
October 31, October 31,
2006 2005 2006 2005
---- ---- ---- ----
Sales $5,596 $3,546 $9,458 $7,026
Cost of products sold 3,936 2,379 6,484 4,836
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Gross margin 1,660 1,167 2,974 2,190
Selling, general and administrative
expenses 1,170 870 2,151 1,756
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Operating income 490 297 823 434
Financial income (expense):
Interest expense (89) (41) (120) (65)
Interest income 2 1 6 2
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(87) (40) (114) (63)
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Income before income taxes 403 257 709 371
Income tax expense 162 -- 299 --
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Net income $241 $257 $410 $371
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Net income per share information:
Basic $0.07 $0.08 $0.13 $0.11
Diluted $0.07 $0.08 $0.12 $0.11
Weighted average common shares
outstanding:
Basic 3,240 3,240 3,240 3,240
Diluted 3,417 3,391 3,410 3,390
